A report on

OVERVIEW & FINANCIAL ANALYSIS

on

Submitted to:
Md. Omar Faruk Bhuiyan

Lecturer
Notre Dame University Bangladesh

Submitted by:
1412152 Mickey Mathew D.Costa

1412143 Idaf Iqbal

1412145 Imran Hossain

1412148 Saadman Lasker

1412159 Asfia Afrin Nodi

Letter of Transmittal
April 8, 2017

Md. Omar Faruk Bhuiyan,

Lecturer,
Notre Dame University Bangladesh

Subject: Letter of Transmittal

Dear Sir,

With due respect we the students of Group Mordor (BBA-1B) have completed our assignment
on Overview & Financial Analysis of City Bank under the course: Fundamentals of Banking.

We are requesting you to check our report thoroughly. We would be highly delighted if you
kindly go through our report.

Your consideration of our proposal is greatly appreciated.

Sincerely yours,

Mickey Mathew D.Costa

On behalf of Group Mordor

i
Acknowledgement
First of all, we would like to express our deepest gratitude to Mr. Omar Faruk Sujon sir, for
providing us the opportunity to do the report on The City Bank

We sincerely thank all the people who helped us in acquiring information for this report.
Especially to our classmate for all their support. Without their help this report would be
incomplete.

We would also like to thank our parents, brother, all friends and enemies who suggested us,
encouraged and discouraged us which enriched our knowledge and helped us in completing
this report. Writing a report is not an easy task, but we would like to give thanks to all these
people who have helped us in every way. All their words and ideas resulted in this report. So, we
would like to give thanks to all of them from the bottom of our heart those who made this
report possible.

ii
 Table of Contents
Letter of Transmittal .................................................................................................................................................... i
Acknowledgement ....................................................................................................................................................... ii
Abstract .............................................................................................................................................................................. iv
Part One
Economic Overview ........................................................................................................................................................ 1
Part Two
Banking Industry in BD.................................................................................................................................................. 3
Part Three
Company Overview ........................................................................................................................................................ 5
Part Four
Financial Statement & Items .................................................................................................................................... 11
Part Five
Financial Statement Analysis.................................................................................................................................... 16
Part Six
Year wise comparison with other banks .............................................................................................................. 19
Conclusion ...................................................................................................................................................................... 23
References....................................................................................................................................................................... 23

iii
Abstract
Bangladesh economy has been undergoing steady above 6% average annual real GDP growth for
the last two decades with sustainable economic and social development despite global financial
crisis and the subsequent slowdown. It is now the 47th largest economy in terms of GDP size. In
circumstances being such, it becomes imperative to find out the role that banks are now playing
in the country and analyze its operational aspects so as to ascertain the importance of this delicate
financial sector and its overall impact on our national economy. After the independence, banking
industry in Bangladesh started its journey with 6 Nationalized commercialized banks, 2 State
owned Specialized banks and 3 Foreign Banks. In the 1980's banking industry achieved significant
expansion with the entrance of private banks. City Bank is one of the oldest private Commercial
Banks operating in Bangladesh. It is a top bank among the oldest five Commercial Banks in the
country which started their operations in 1983. City Bank is among the very few local banks which
do not follow the traditional, decentralized, geographically managed, branch based business or
profit model. This report aims to provide of the financial situation of City Bank and how it is
holding up against its competitors.

iv
Part One
Economic Overview

With a continued average economic growth of over 6% in the last ten years (2004-2014),
Bangladesh now proudly stands as an emerging trade and investment destination in
South Asia. It is currently in factor driven development stage. Bangladesh succeeded in
achieving a sustainable reduction of poverty incidence by almost a third in the past
decade. It is expected that GDP will grow around 7% in the FY 2015-16. A strong domestic
demand, high export growth and continued expansion of infrastructural facilities
attributed to the accomplishment of accelerated growth amidst the fragile pace of global
economic recovery.

International Monetary Fund (IMF) in its World Economic Outlook, 2015 has ranked
Bangladesh as the 56th largest economy in the world in terms of nominal GDP in 2014.
Although more than half of the GDP is generated through the service sector, almost half
of the total population are employed in agriculture. Garment exports, the backbone of
Bangladesh industrial sector and 80% of total exports, surpassed US$18 billion in 2014.
Remittances sent by Bangladeshi expatriates totaled US$15.30 billion in 2014-15 financial
year, also forms a very important pillar of the countrys economy. In Bangladesh, a strong
middle class is gradually forming which according to some estimates is close to 18 % of
the population. Due to emerging middle class and in general better income level of
common people, domestic demand is growing and that becomes an important driver of
economic activity. As major economies of the world are gradually losing their
competitiveness, manufacturing has been gradually starting to take root in the country.
Bangladesh has now emerged as an important manufacturing base for textile products,
pharmaceuticals, finished leathers, light and medium industries, IT and shipbuilding. While
world trade was severely disrupted by the global recession in recent past with exports of
most countries declining sharply, the export of Bangladesh shows satisfactory growth.
Bangladesh has emerged as the second largest exporter in the world apparel market and
is also doing exceedingly well in the exports of finished leathers and leather goods, frozen
foods, jute and jute goods, pharmaceutical products, light engineering products and small
ocean going vessels.

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The major challenges facing Bangladesh now include:

accelerating the annual rate of growth to 7% and above to move closer to upper
middle-income status,
diversifying the economic base and creating new sources of growth,
making growth more inclusive and reducing poverty by creating jobs and
supporting rural development,
increasing transparency and accountability by addressing institutional and policy
weaknesses, and
reducing vulnerabilities to environmental degradation and climate change.

Bangladesh set a target to be a middle-income country by 2021. The country is

undergoing substantial economic and social change, such as demographic transition,
rapid industrialization and structural change, and substantial rural-urban migration.
Hence, going forward, eliminating infrastructure bottlenecks and improving the
investment climate are top priorities for Bangladeshi Government. Further efforts will be
devoted by the Government in maintaining macroeconomic stability; strengthening
revenue mobilization; deepening financial-sector and external trade reforms; improving
labor skills, economic governance, and urban management.

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Part Two
Banking Industry in BD

Banking is the backbone of national economy. All sorts of economic and financial activities
revolve round the axis of the bank. As industries produces goods and commodities, the
banks create and controls money market and promotes formation of capital. From this
point of view, banking-a technical profession- can be termed as industry. Services to its
customers are the products of banking industry besides being a pivotal factor in
promoting capital formation in the country. As all economic and fiscal activities revolve
round this important Industry, the role of banking can hardly be over emphasized.

In circumstances being such, it becomes imperative to find out the role that banks are
now playing in the country and analyze its operational aspects so as to ascertain the
importance of this delicate financial sector and its overall impact on our national
economy. In the global context, the role of banks is far reaching and more penetrating in
the economic and fiscal discipline, trade, commerce, industry, export and import all carried
through the banks. Banks are the only media through which international trade
&commerce emanate the entire credit transactions, both national and international.

The Jews in Jerusalem introduced a kind of banking in the form of money lending before
the birth of Christ. The word 'Bank' was probably derived from the word 'bench' as during
ancient time Jews used to do money -lending business sitting on long benches.
First modern banking was introduced in 1668 in Stockholm as 'Svingss Pis Bank' which
opened up a new era of banking activities throughout the European Mainland.

After the independence, banking industry in Bangladesh started its journey with 6
Nationalized commercialized banks, 2 State owned Specialized banks and 3 Foreign
Banks. In the 1980's banking industry achieved significant expansion with the entrance of
private banks. Now, banks in Bangladesh are primarily of two types:

Scheduled Banks: The banks which get license to operate under Bank Company
Act, 1991 (Amended in 2003) are termed as Scheduled Banks.
Non-Scheduled Banks: The banks which are established for special and definite
objective and operate under the acts that are enacted for meeting up those
objectives, are termed as Non-Scheduled Banks. These banks cannot perform all
functions of scheduled banks.

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There are 56 scheduled banks in Bangladesh who operate under full control and
supervision of Bangladesh Bank which is empowered to do so through Bangladesh Bank
Order, 1972 and Bank Company Act, 1991. Scheduled Banks are classified into following
types:

State Owned Commercial Banks (SOCBs): There are 4 SOCBs which are fully or
majorly owned by the Government of Bangladesh.
Specialized Banks (SDBs): 4 specialized banks are now operating which were
established for specific objectives like agricultural or industrial development. These
banks are also fully or majorly owned by the Government of Bangladesh.
Private Commercial Banks (PCBs): There are 39 private commercial banks which are
majorly owned by the private entities. PCBs can be categorized into two groups:
Conventional PCBs: 31 conventional PCBs are now operating in the industry. They
perform the banking functions in conventional fashion i.e interest based
operations.
Islami Shariah based PCBs: There are 8 Islami Shariah based PCBs in Bangladesh
and they execute banking activities according to Islami Shariah based principles i.e.
Profit-Loss Sharing (PLS) mode.
Foreign Commercial Banks (FCBs): 9 FCBs are operating in Bangladesh as the
branches of the banks which are incorporated in abroad.

The banking sector of Bangladesh comprises of four categories of scheduled banks. These
are state-owned commercial banks (SCBs), state-owned development finance institutions
(DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs). The number
of banks remained unchanged at 47 in 2012.These banks had a total number of 8322
branches as of December 2012 compared to 7961 in December 2011. At the end of June
2013, the total number of banks and their branches increased to 55 and 8427 respectively
due to opening of new PCBs and bank branches during the year.

Banking system Structure of Bangladesh

Bank In the year of 2012 (
Billion Taka)
types
Number Number of Total Percent of Deposits Percent of
of Banks Branches assets industry deposits
assets
SCBs 4 3478 1831.9 26.0 1377.9 25.5
DFIs 4 1440 385 5.5 260.4 4.8
PCBs 30 3339 4371.5 62.2 3430.7 63.6
FCBs 9 65 441.8 6.3 327.0 6.1
Total 47 8322 7030.7 100 5396.0 100

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Part Three
Company Overview

City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a
top bank among the oldest five Commercial Banks in the country which started their
operations in 1983. The Bank started its journey on 27th March 1983 through opening
its first branch at B. B. Avenue Branch in the capital, Dhaka city. It was the visionary
entrepreneurship of around 13 local businessmen who braved the immense
uncertainties and risks with courage and zeal that made the establishment & forward
march of the bank possible. Those sponsor directors commenced the journey with only
Taka 3.4 crore worth of Capital, which now is a respectable Taka 2311.78 crore as capital
& reserve.

City Bank is among the very few local banks which do not follow the traditional,
decentralized, geographically managed, branch based business or profit model. Instead
the bank manages its business and operation vertically from the head office through 5
distinct Units namely

Business Unit
Branch Banking
Risk Unit
Operations Unit
Support

Over the years City Bank has established itself as a leading private commercial bank in
the country with proven leadership in Corporate Banking and growing focus on SME and
Consumer businesses. We are also a bank which provides both conventional and Islamic
banking products and services. The Bank offers a wide range of depository, loan and
card products and a variety of services to cater to virtually every customer segment.
From Student Banking to Priority Banking to AMEX credit card, City Bank has almost all
banking products on offer. The product basket is rich in content featuring different types
of Savings and Current Accounts, Personal Loans, Debit Cards, Credit Cards, Pre-paid
Cards, Internet Banking, Corporate Banking, SME Banking, Investment Banking, Treasury
& Syndication services etc.

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City Bank is among the very few local banks which do not follow the traditional,
decentralized, geographically managed, branch based business or profit model. Under
a real-time online banking platform, these 4 business divisions are supported at the back
by a robust service delivery or operations setup and also a smart IT Backbone. Such
centralized business segment based business & operating model ensure specialized
treatment and services to the banks different customer segments.

City Bank is one of the largest corporate banks in the country with a current business
model that heavily encourages and supports the growth of the bank in Retail and SME
Banking. The bank is very much on its way to opening many independent SME centers
across the country within a short time. The bank is also very active in the workers' foreign
remittance business. It has strong tie-ups with major exchange companies in the Middle
East, Europe, Far East & USA, from where thousands of individual remittances come to
the country every month for disbursements through the bank's large network of 99
online branches and SME service centers.

The bank currently has total 120 branches which includes 99 online branches, 1 full-
fledged Islamic Banking branch, 1 SME service center and 11 SME/Agri branches spread
across the length & breadth of the country. Besides these traditional delivery points, the
bank is also very active in the alternative delivery area. It currently has 310 ATMs of its
own; and ATM sharing arrangement with partner banks that has more than 1150 ATMs
in place; SMS Banking; Internet Banking and so on. It already started its Customer Call
Center operation.

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 The City Bank at a glance

NAME The City Bank Limited

Legal Status Public Limited Company

Date of Incorporation March 14, 1983

Formal Inauguration March 27, 1983

Chairman Aziz Al Kaiser

Vice- Chairman Hossain Mehmood

Managing Director & CEO K Mahmood Sattar

Company Secretary Md. Kaif Khan

Authorized Capital Tk. 1,750,000,000

Paid up Capital Tk. 1,571,130,000

Reserves Tk. 4,293,104,278

Total Assets Tk.76, 466,801,564

Total Manpower 2,424

Number of Branches 87

Number of SME Business Centers 14

Number of SME Service Centers 10

Number of ATM Booth 46

Web Site www.the citybank.com

Registered Office 136, Bir Uttam Shawakat Sarak(Gulshan Avenue)

Gulshan-2Dhaka-1212, Bangladesh

The Bank has completed its credit rating by Credit Rating Agency of Bangladesh Limited
(CRAB) based on the Financial Statements dated 31 December 2013 and was awarded
AA3 in the Long Term and ST-2 in the Short Term.

Vision

City Banks vision is the desired future where they want to see themselves. Their vision is
always stretching and far-fetched. It sets the tone for their organization and gives a
common direction to their employees as to where they want to be. At City Bank, they have
re-engineered their vision to define a path towards their envisioned future.

The financial supermarket with a winning culture offering enjoyable experiences

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Vision: 2010

Maintain a high standard credit quality, control & compliance in place

Bring down NPL ratio further
Basel II guidelines implementation in terms of content & sprit
Promote continuous on the job local and overseas training.

Mission

Their mission defines the specific focuses by which we reach their vision:

Offer wide array of products and services that differentiate and excite all customer
segments.
Be the Employer of choice by offering an environment where people excel and
leaders are created.
Continuously challenge processes and platforms to enhance effectiveness and
efficiency.
Promote innovation and automation with a view to guaranteeing and enhancing
excellence in service.
Ensure respect for community, good governance and compliance in everything we
do.

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Strategic Priorities

Their strategic priorities are well-defined, clear and aligned with the vision of becoming
financial supermarket with a wide range of products and services for all types of customer.
They continue to strive for profit and sound growth by doing the business that they do
well by expanding into areas undeserved, entering niche market and exploring
innovative ideas.

Making business strategy flexible to keep us on track for a sustainable growth;

Having a strong customer focus and build relationships based on integrity, superior
service and mutual benefit;
Continuing to provide new products and services to customers with support of
superior information technology platforms;
Maintaining sound capital base to support growth;
Ensuring responsible corporate governance through conformity with the law and
by conducting all our actions honestly, responsibly and ethically;
Pursuing balance sheet growth through selective lending and by offering value
proposition;
Leveraging balance sheet management through improved productivity, recovery
and cost
rationalization;
Ensuring effective risk management for sustainable growth in shareholders value;
Improving quality of human resources by strengthening their competencies;
Focusing on Corporate Social Responsibility (CSR);
Ensuring City Bank brand is recognized as the Most Reputed Financial Institution
Brand in Bangladesh;
Believing in zero tolerance compliance culture.

Credit Division Products:

There are many types of loan in City Bank, which takes customer to fulfill their needs. Such
as-

a) Retail loan = Most types of loan processing from here. These Are:

City Express
City Solution
City Drive
City Credit Card
City Scholar

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 City Double Loan

b) Corporate loan = Big company/organization are including here.

c) SME loan = Small/Medium entrepreneur are including here.

Deposit Products

City Bank offers a wide variety of deposit products to meet your financial needs. From
current and savings accounts to Fixed Deposits and Deposit Schemes each account is
designed to give you the best value for your money.

Deposit products of City Bank are:

Transactional Account
Current Accounts
General Savings Account
Savings Delight Account
High Value Savings Account
New Born's Deposit Account
Seniors' Savings Account
Student Savings Account
School Plan
College Plan
RMG Workers' Account
Basic Savings Account

Term Deposit Account

General DPS Account
Insurance Backed DPS Account
Fixed Deposit Account
Monthly Interest Paying FD Account
Double Money FD Account
Foreign Currency Account
FCY Account
NFCD Account
RFCD Account

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Part Four
Financial Statement & Items

A table showing the Consolidated Balance Sheet items is given below:

The City Bank Limited

Consolidated Balance Sheet
As at December 31

2015 2014 2013

Taka Taka Taka

PROPERTY AND ASSETS

Cash
Cash in hand (including foreign 2,998,982,425 2,497,043,107 3,140,947,220
currencies)
Balances with Bangladesh Bank 12,438,634,907 8,431,511,967 7,281,465,282
and its agent bank(s) (including
foreign currencies)
15,437,617,332 10,928,555,074 10,422,412,502
Balances with other banks and
financial institutions
In Bangladesh 15,502,528,823 3,632,420,929 3,263,726,466
Outside Bangladesh 413,446,435 1,559,041,017 399,856,895
15,915,975,258 5,191,461,946 3,663,583,361
Money at call and short notice 95,379,167 1,998,379,167 3,956,729,167
Total Current Asset 31,448,971,757 18,118,396,187 18,042,725,030
Investments
Government 19,691,517,972 23,737,817,554 21,985,302,692

Others 6,325,444,956 6,689,564,261 5,664,808,169

26,016,962,928 30,427,381,815 27,650,110,861
Loans and advances
Loans, cash credits, overdrafts, 138,156,604,652 111,476,616,174 86,008,995,489
etc.
Bills purchased and discounted 4,858,067,512 5,013,120,884 4,858,653,956

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 143,014,672,164 116,489,737,058 90,867,649,445
Fixed assets including land, 8,172,221,437 8,144,060,566 6,851,347,927
building, furniture and fixtures
Other assets 4,759,716,534 3,360,953,081 3,765,101,345
Non-banking assets 792,824,667 384,551,746 382,622,964
Total assets 214,205,369,487 176,925,080,453 147,559,557,572

LIABILITIES AND
SHAREHOLDERS EQUITY
Liabilities
Tier-II subordinated bond 3,000,000,000 3,000,000,000
Borrowing from other banks, 22,079,989,593 17,196,768,200 8,164,496,951
financial institutions and
agents
Deposits and other accounts
Current deposits and other 20,417,719,100 14,288,303,427 10,726,153,314
accounts
Bills payable 1,976,445,056 911,682,504 838,533,143
Savings bank deposits 31,213,313,434 22,987,673,384 18,606,964,869
Fixed deposits 89,798,021,718 80,254,321,798 76,884,375,052
Bearer certificate of deposit
143,405,499,308 118,441,981,113 107,056,026,378
Other liabilities 21,136,243,153 15,976,286,808 14,145,023,885
Total Current Liabilities 165,485,488,901 135,638,749,313 115,220,523,329
Total liabilities 189,621,732,054 154,615,036,121 129,365,547,214
Shareholders' equity
Paid-up capital 8,757,980,310 8,340,933,630 6,950,778,030
Statutory reserve 5,002,816,644 4,103,894,030 3,384,692,023
Share premium 660,857,013 1,082,116,244 1,924,634,700
Other reserve 7,999,742,013 7,978,246,538 5,578,357,360
Surplus in profit and loss account 2,159,706,674 801,804,006 349,728,341
Total shareholders' equity 24,581,102,654 22,306,994,448 18,188,190,454
Non-controlling interest 2,534,779 3,049,884 5,819,904
Total liabilities and 214,205,369,487 176,925,080,453 147,559,557,572
shareholders' equity

OFF BALANCE SHEET ITEMS

Contingent liabilities
Acceptances and endorsements 13,190,254,052 11,057,333,323 17,147,774,288
Letters of guarantees 10,218,482,911 13,089,666,520 12,447,680,450
Irrevocable letters of credit 13,817,709,300 9,569,305,671 9,404,782,280

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 Bills for collection 10,854,384,996 10,501,797,506 6,424,461,406
Other contingent liabilities - -
Total 48,080,831,259 44,218,103,020 45,424,698,424
Other commitments
Documentary credits and short
term trade -related transactions
Forward assets purchased and 2,045,042,200 2,124,260,400 2,536,878,100
forward deposits placed
Undrawn note issuance and
revolving underwriting facilities
Undrawn formal standby facilities,
credit lines and other
commitments
Total 2,045,042,200 2,124,260,400 2,536,878,100
Total Off-Balance Sheet items 50,125,873,459 46,342,363,420 47,961,576,524
including contingent liabilities

The City Bank

Consolidated Profit and Loss Account
For the year ended 31 December

2015 2014 2013

Taka Taka Taka

Interest income 15,228,190,245 13,973,036,691 13,407,567,626

Interest paid on deposits and
-9,822,863,689 -8,914,717,894 -8,607,183,800
borrowings etc.
Net interest income 5,405,326,556 5,058,318,797 4,800,383,826
Investment income 4,527,078,328 2,859,628,617 1,675,290,499
Commission, exchange and
2,142,651,667 1,968,813,803 1,615,094,656
brokerage
Other operating income 1,011,514,319 871,413,619 639,389,468
7,681,244,314 5,699,856,039 3,929,774,623
Total operating income (A) 13,086,570,870 10,758,174,836 8,730,158,449
Salaries and allowances 3,269,837,185 2,936,827,991 2,454,346,593

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 Rent, taxes, insurance, utilities,
725,631,570 648,204,082 549,534,363
etc.
Legal & professional expenses 26,747,198 25,960,845 20,203,027
Postage, stamp,
76,601,819 85,691,022 66,196,663
telecommunication, etc.
Stationery, printing,
187,852,656 205,665,635 258,693,287
advertisements, etc.
Managing Director's salary and
16,409,425 15,046,921 17,630,000
allowances
Directors' fees & expenses 1,477,969 1,493,314 1,382,216
Auditors' fees 1,508,573 1,354,850 1,278,285
Charges on loan losses 306,508,366
Depreciation and repair of bank's
767,892,812 671,972,530 583,139,093
assets
Other expenses 1,243,949,218 993,227,681 822,563,546
Total operating expenses (B) 6,317,908,425 5,891,953,237 4,774,967,073
Profit before provision (C = A-
6,768,662,445 4,866,221,599 3,955,191,376
B)
Provision for loans and advances: -2,148,269,292 -1,704,589,739 -2,420,518,891
Provision for off-balance sheet
-21,000,000
exposures -105,000,000
Other provision -37,600,229 -20,337,274 -12,298,774
Total provision (D) -2,206,869,521 -1,724,927,013 -2,537,817,665
Total profit before taxes (E =
4,561,792,924 3,141,294,586 1,417,373,711
C+D)
Provision for taxation (F)
Current tax expense -1,646,005,974 -1,585,366,117 -957,099,018
Deferred tax (income)/expense 677,355,387 150,182,944 29,952,724
Total provision for tax -968,650,587 -1,435,183,173 -927,146,294
Net profit after tax (G = E-F) 3,593,142,337 1,706,111,413 490,227,417
Net profit after tax
attributeable to:
Equity holders of the bank 3,593,116,965 1,708,703,707 491,149,924
Non-controlling interest 25,372 -2,592,294 -922,507
3,593,142,337 1,706,111,413 490,227,417
Appropriations
Statutory reserve 898,922,614 719,202,007 361,245,511
General reserve
898,922,614 719,202,007 361,245,511
Retained surplus for the year 2,694,194,351 989,501,700 129,904,413
Earnings per share (EPS) 4.1 2.05 0.71

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Page | 15
Part Five
Financial Statement Analysis

Profitability Ratio
2015 2014 2013
Profit Margin 35.50% 36.20% 35.80%
Return on Asset 1.80% 1.40% 0.70%
Return on Equity 14.70% 10.60% 7.30%

Profitability Ratio
7.30%
2013 0.70%
35.80%
10.60%
2014 1.40%
36.20%
14.70%
2015 1.80%
35.50%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

Return on Equity Return on Asset Profit Margin

Profitability ratio is a class of financial metrics that is used to assess a business's ability to
generate earnings compared to its expenses and other relevant costs incurred during a
specific period of time. Here we are seeing that, over the year City Banks profit margin is
staying around 35-36%. ROE is increasing, which means they are efficiently managing the
equity that shareholders have contributed to them. ROA is also increasing which again
suggests they are very efficient in using assets to generate profit.

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 Liquidity Ratio
2015 2014 2013
Current Ratio 0.19 0.1336 0.1566
Cash Ratio 0.0933 0.0806 0.0905

Liquidity Ratio
0.090456216
2013
0.156592979
0.08057104
2014
0.133578319
0.093286834
2015
0.190040661

0 0.05 0.1 0.15 0.2

Cash Ratio Current Ratio

Liquidity ratios attempt to measure a company's ability to pay off its short-term debt
obligations. Here, we are seeing in 2015 their current ratio is better than other two years.

Leverage Ratio
2015 2014 2013
Total Debt Ratio 0.8852 0.8739 0.8767
Debt Equity Ratio 7.7141 6.9312 7.1126

Leverage Ratio
2013 7.112612304
0.876700563

2014 6.931235693
0.873901177

2015 7.714126365
0.885233328

0 2 4 6 8 10

Debt Equity Ratio Total Debt Ratio

A leverage ratio is a financial measurement that looks at how much capital comes in the
form of debt (loans), or assesses the ability of a company to meet financial obligations.
We are seeing that, total debt ratio is mostly stable but debt equity ratio has increased a
little bit.

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 Market Ratio
2015 2014 2013
Earnings Per Share 4.1027 2.0455 0.7053
Price to Earnings Ratio 4.9723 10.658 28.642

Market Ratio
28.64184971
2013
0.705261713
10.65779167
2014
2.04545188
4.972338506
2015
4.102697348

0 5 10 15 20 25 30 35

Price to Earning Ratio Earnings Per Share

DOL
2015 2014 2013
Degree of Operating Leverage 2.41 5.51 0.02

Degree of Operating Level

5.51

2.41

0.02
2015 2014 2013

Degree of Operaling Leverage

The degree of operating leverage is a measure used to evaluate how a company's

operating income changes with respect to a percentage change in its sales. The higher
the degree of operating leverage, the more volatile and unpredictable the EBIT figure is
relative to a given change in sales.

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Part Six
Year wise comparison with other banks

In this part, we will compare the financial data of City Bank, Easter Bank and UCBL for
the year 2015 and 2014.

A table containing the ratio comparisons is given below:

Comparison
For the year 2015 For the year 2014
Name of Ratio City Eastern UCBL City Eastern UCBL
Bank Bank Bank Bank
Profitability
Profit Margin 35.50% 22% 34% 36.20% 30% 35%
Return on Asset 1.80% 0.27% 1.37% 1.40% 0.32% 1.39%
Return on Equity 14.70% 6.18% 15.65% 10.60% 8.01% 16.43%

Liquidity Ratio
Current Ratio 0.19 0.1008 0.49 0.1336 0.1006 0.56
Cash Ratio 0.0933 0.0651 0.3 0.0806 0.0611 0.38

Leverage Ratio
Total Debt Ratio 0.8852 0.3534 0.61 0.8739 0.3788 0.65
Debt Equity Ratio 7.7141 8.0565 7.02 6.9312 9.5616 7.7

Market Ratio
Earnings Per Share 4.1027 2.1625 4 2.0455 2.2282 3.69
Price to Earnings Ratio 4.9723 11.329 5.13 10.658 10.995 5.56

Degree of Operating 2.41 4.2918 0.19 5.51 1.4279 -0.11

Leverage

Page | 19
Graph to represent the above data from the table is given below:

Profitability Ratio
(2015)
40.00%
35.00%
30.00%
25.00%
City Bank
20.00%
Eastern Bank
15.00%
UCBL
10.00%
5.00%
0.00%
Profit Margin Return on Asset Return on Equity

Profitability Ratio
(2014)
40.00%

35.00%

30.00%

25.00%
City Bank
20.00%
Eastern Bank
15.00%
UCBL
10.00%

5.00%

0.00%
Profit Margin Return on Asset Return on Equity

According to the analyzed data, we are seeing that City Banks profit and Return on
Asset is better than the other two banks but their ROE is lesser than UCBL in 2015.
Which means City Bank is doing a very good job in comparison to their competitors.

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 Leverage Ratio Comparison
(2014)
12

10

8
City Bank
6
Eastern Bank
UCBL
4

0
Total Debt Ratio Debt Equity Ratio

Leverage Ratio Comparison

(2015)
9

5 City Bank

4 Eastern Bank
UCBL
3

0
Total Debt Ratio Debt Equity Ratio

According to the graph, we can say that City Bank is almost similar for investing in terms
of risk it generates through loans.

Page | 21
 Market Ratio Comparison
(2015)
12
10
8
City Bank
6
Eastern Bank
4
UCBL
2
0
Earnings Per Share Price to Earning Ratio

Market Ratio Comparison

(2014)
12
10
8 City Bank
6
Eastern Bank
4
2 UCBL
0
Earnings Per Share Price to Earning Ratio

4 For the year 2015

3 For the year 2014
2

0
City Bank Eastern Bank UCBL
-1

In the graph, we are seeing that the Degree of Operating Leverage has reduced in 2015
which means any change in sells amount will not have large impact on net operating
income.

Page | 22
Conclusion

The City Bank Limited is performing very well and is running with steady growth in
almost every sphere. They are committed to be a leading Bank in Bangladesh. No doubt,
this is the sign of good management.

From the above findings and discussion, we can see that, The City Bank now in good
position compared to previous some year. However, the bank can be more improved in
its position. Modern Commercial Banking is challenging business.

References

1. https://www.scribd.com/documen[t/242856452/The-Banking-Industry-in-
Bangladesh
2. https://www.scribd.com/doc/6597612/Banking-Sector-in-Bangladesh
3. https://www.scribd.com/document/315122317/Banking-Industry-of-Bangladesh
4. https://www.thecitybank.com/highlights.php
5. http://www.assignmentpoint.com/business/entrepreneurship-development-
business/a-report-on-city-bank.html
6. https://www.thecitybank.com/Deposit.php

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